Struggling with debt but convincing yourself it’s not a big deal? Burying your head in the sand, hoping it might go away eventually? You might be experiencing debt denial. It’s more common than you think – and overcoming it is the first step toward financial freedom. Debt is nothing to be ashamed of, and at Spergel, we’ve helped over 100,000 Canadians to gain debt relief. In this article, we explore debt denial and how you can overcome it.
What is debt denial?
Debt denial is when an individual avoids or downplays their financial problems, convincing themselves they’re in control even as debt piles up. It’s a psychological coping mechanism – one that often delays getting help and makes things worse in the long run. You might be in debt denial if:
- You avoid checking your account balances or opening bills
- You continue spending like nothing’s wrong
- You tell yourself “everyone has debt” or “I’ll figure it out later”
- You feel anxious or ashamed when thinking about your finances
Debt denial can affect anyone, regardless of income level or lifestyle. According to the Financial Consumer Agency of Canada, nearly half of Canadians say they’ve lost sleep because of financial worries, and nearly one in three report running short of money at the end of the month.
These worrying figures prompted us to conduct our own research, and we conducted our study on Debt Load and the Impact to Psychological Wellbeing. It revealed a startling reality: the burden of debt extends far beyond finances, impacting sleep, eating habits, social connections, and overall mental health.
Why debt denial happens
Debt denial often stems from shame, fear, or a lack of financial literacy. If you weren’t taught how to manage money – or if you’ve faced financial trauma in the past – it’s understandable that your first instinct is to ignore the problem.
But debt won’t disappear on its own. The longer you wait, the more interest builds up – and the harder it becomes to regain control. At Spergel, we pride ourselves on being 100% judgement-free. We know that financial issues can happen to anyone, from all kinds of circumstances, and we are here to help however we can.
How to overcome debt denial
Facing your finances head-on is never easy – but it’s empowering. At Spergel, we try to make this is as easy for you as possible, by offering FREE, no-obligation consultations to understand your financial circumstances and examine your appropriate debt relief options. Here’s how to break through debt denial and start your journey to debt freedom:
1. Acknowledge the problem without shame
It’s not about blame – it’s about getting better. You’re not alone: according to our study, over 50% of Canadians reported difficulty sleeping because of debt. Admitting that you need help is a sign of strength, not failure.
2. Track your debts
Make a list of all your debts: credit cards, loans, lines of credit, and anything else you owe. Include balances, interest rates, and minimum payments. Seeing the full picture can be scary – but it’s essential. A tool you might find helpful is our budget template, which can allow you to track your debts and upcoming bills per month.
3. Talk to a Licensed Insolvency Trustee (LIT)
Only a Licensed Insolvency Trustee is federally regulated to offer debt relief solutions like consumer proposals or bankruptcy. At Spergel, our experienced LITs offer non-judgmental, confidential consultations to explore your options. We’ve been helping Canadians for over 35 years.
4. Set a realistic plan
Once you know what you’re dealing with, you can build a plan – whether that means budgeting, consolidating debt, or filing a consumer proposal. The key is to take small, manageable steps forward.
5. Get support
Talk to a Licensed Insolvency Trustee or trusted loved one. Debt can impact your mental health, and having someone in your corner can make all the difference.
Real Canadians. Real success.
Many of our clients come to us after months – sometimes years – of avoiding their finances. Take Larissa from Ontario, who shared:
“I can’t thank Spergel enough for their support and expertise during one of the toughest times in my life. Their consumer proposal not only reduced my debt significantly but also stopped the constant stress of creditor calls. Now, I’m able to focus on providing a stable future for my children without worrying about money. And, I can now sleep at night! Spergel truly gave me a fresh start.” – Larissa, ON
Larissa’s story is just one of many. It shows that once you face your debt and get the right help, life can get better – quickly. Discover more Success Stories of Canadians we’ve helped, or check out our client reviews for yourself.
You’re not alone. Spergel can help.
If you’re ready to face your debt – and move past denial – Spergel is here for you. Our Licensed Insolvency Trustees have been helping Canadians for over 35 years. We treat every client with dignity, respect, and compassion. Book your free consultation today and take the first step toward a debt-free future.
Related resources:
- Overcoming embarrassment and debt shame
- Debt help in Atlantic Canada: why so many are too embarrassed to ask – and what you can do
- Why financial education needs to start earlier: lessons from Canadians facing debt
- Financial stress: its impacts and how taking action can help you rest easier
- How to talk about debt with your partner
About Spergel
At Spergel, we’ve helped over 100,000 Canadians become debt-free with solutions tailored to their unique financial situations. We’re proud to be a federally regulated, Canadian-owned firm with a reputation for compassionate, expert care.